Australian Shares

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Macro Morning

By Chris Becker  Risk markets shot out the gate to start the week with fresh vigor, with more economic upside expectations overshadowing rising pandemic concerns across the US and other emerging countries.  The US services ISM survey showed a substantial increase although employment continued to lag, but this didn’t stop Wall Street bidding up everything

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Macro Afternoon

A surge in Chinese shares is spurring on risk appetites across the region, with stocks lifting strongly this afternoon, taking risk currencies like the Australian dollar with them but leaving gold and the ASX200 behind. The reason behind the catalyst is unclear, apart from a technical one – its a five year high for Chinese

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Macro Morning

By Chris Becker  Risk markets were very quiet Friday night due to the long weekend in the US (the one time of year when they pronounce day/month correctly) with a forgettable session in Europe as stocks retreated, while bond yields fell slightly amid mixed reaction on currency markets due to the lack of volume. Commodoities

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Macro Afternoon

Another solid session across Asian stock markets today to finish the week, as traders absorbed last nights early NFP print due to the long weekend on US markets. The USD was flat against most of the major currencies, with gold also largely unchanged from its close last night. The lack of volume tonight is likely

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ASX bubbles over

The Australian dollar is soft this morning: Bonds are bid: The XJO breaks above 6000 has anew high in it’s sights: Big Iron is soft: Big Gas lagging oil: Big Gold is now outdoing the currency: Big Banks are surging on earnings upgrades as economic outcomes appear better than feared. They’re not: Big Chunt likewise:

4

Macro Morning

By Chris Becker  The short week for US markets meant the early release of the June non farm payrolls (US unemployment) numbers overnight, which surprised to the upside, but didn’t give a huge boost to Wall Street as expected, although the bubblicious NASDAQ made another new record high. The USD came back slightly against the

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Macro Afternoon

A more solid session across Asian stocks today, as traders await for tonight’s early NFP print due to the long weekend on US markets. The USD was relatively weak with Aussie and Kiwi lifting, and Euro also ready to get out of its funk as the usual undollar volatility awaits. In mainland China, the Shanghai

1

Macro Morning

By Chris Becker  Wall Street continued to rise overnight, with the NASDAQ to an all time high while the release of the FOMC minutes had little impact, with markets focusing more positively on latest ISM manufacturing print. The USD fell slightly with bond yields rising while gold slumped after almost lifting through the $1800USD per

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Macro Afternoon

A mixed session across Asia, echoing a similar mood in Europe and Wall Street overnight with Japanese stocks falling on reaction to a poor consumer confidence print and the possibility of more lockdowns due to a local uptick in coronavirus cases. Elsewhere it was more positive, with gold and other major currencies lifting but this

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Goldman: Stocks enter “bubble territory”

Via Tony Pasquariello, global head of HF Sales at Goldman Sachs The dominant narrative of the week was a return to trading COVID headlines, as the worst period for US case growth since April served as disruption for those expecting business-as-usual trading conditions this summer. Along the way, stock operators absorbed another heavy dose of

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Gold shines on struggling ASX

The Australian dollar is still trying to push higher this morning. The chart is still bearish: Bonds are stable: Stocks are struggling despite another drunken night on Wall St: Big Iron is OK: Big Gas is struggling: Most of Big Gold is coiled in an ascending triangle pattern looking for break out: Big Banks are

4

Macro Morning

By Chris Becker  Wall Street continued its rebound overnight, with the NASDAQ nearly back to an all time high and the best quarter recorded in over 20 years. This was despite two damning testimonies to US Congress from Dr Fauci about the coronavirus spread and Fed Chair Powell’s stating that a full recovery is unlikely

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Macro Afternoon

Wall Street’s rebound overnight translated into similar gains here in Asia as we close out the month/quarter/financial year. In mainland China, the Shanghai Composite bounced back to recover most of Monday’s losses to be up 0.8% to 2984 points while in occupied Hong Kong the Hang Seng Index has barely moved, lifting only 0.2% higher

4

Macro Morning

By Chris Becker  Wall Street rebounded overnight, spurned on by a surge in home sales and the usual quarter/end year rebalancing meme. Meanwhile the latest German CPI surprised to the upside which sent Euro up sharply before retreating later in the session alongside other undollars, with gold still holding to its record high, but only

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Macro Afternoon

Wall Street’s slump on Friday has survived through the weekend to start the week here in Asia with a similar selloff, with most stock markets down 1-2% across the region. The so-called 2nd wave of COVID-19 is weighing on risk assets again, with currencies moving slightly higher against USD while gold held on to its

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Stock shorts capitulate

Via ZeroHedge: After three months of relentless contrarian bearishness by institutional investors, even as retail investors first, and hedge funds subsequently (latest HF net leverage is 99%-ile) flooded into stocks, large institutions such as vanilla mutual funds and pensions finally capitulated to the Fed which is now openly pushing stock prices higher. In the CFTC’s latest

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Macro Morning

By Chris Becker  Wall Street stumbled on Friday night with yet another reversal in sentiment as the US failed response to the coronavirus with yet another record high number of cases has seen many States begin to again restrict economic activity. US stocks were off by more than 2% and futures are suggesting similar falls

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Macro Afternoon

Following the bounce on Wall Street overnight, Asian stocks came back to end the trading week with relatively strong sessions. However the week in aggregate can be written off a scratch session with stocks in a clear holding pattern as the realisation of a “2nd” wave of the coronavirus throughout the US is gaining hold.

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Buy Australian domestic demand stocks?

Via Bloomie: An Australian equities fund manager is wagering that stocks linked to the domestic economy will become the biggest winners as coronavirus measures ease. Firms tied to the country’s economic health should rebound quickly as restrictions unwind and consumption increases, said Jelena Stevanovic, portfolio manager at Platypus Asset Management Ltd. Australia is in a

3

Macro Morning

By Chris Becker  The plunge protection team stepped up to the plate again last night on Wall Street as a stunningly bad weekly jobless claim print and another record high number of new COVID-19 cases in the US  wasn’t real enough for shares to selloff. Commodities rallied with oil up over 2% while the USD

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Macro Afternoon

Following the rout on Wall Street overnight, Asian stocks took a tumble today, not helped by Chinese stocks taking the day off with both European and S&P futures in the red as traders go defensive before the amateurs start selling off. Gold came back a little as other undollars like Aussie remain depressed while Bitcoin

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Macro Morning

By Chris Becker  Exuberance turned to fear overnight, and depending on what side of reality you listen to it was either Biden’s fault for leading in the US presidential polls (which means 2/5ths of SFA) or the growing 2nd wave that’s actually the unfinished 1st wave of the coronavirus. Weighing on European sentiment were more

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Macro Afternoon

Bit of a nothing session here for stocks in Asia today with only mainland Chinese and their satellite Australian bourses rising while the rest of the region puts in scratch sessions. Tonight’s session will focus on the latest durable goods order print from the US while the next IFO survey could take the wind out

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ASX takes on golden hue

AUD is pushing higher today: Bonds are range trading: XJO is stalled despite strong offshore leads: Big Iron is up: Big Gas is down: Big Gold is off and running finally. Will the great ball of Millennials buy it? Banks meh: Big Chunt is so overvalued not even Nasdaq records can fire it up: By

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Macro Morning

By Chris Becker  Exuberance is exceeding expectations across the risk complex as a swathe of economic activity data overnight pointing to a turnaround in nearly virus free Europe excited stock markets and other risk assets the world over, with tech stocks leading the orgy of buying. Forgotten was the reality of geometric progression of the

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Macro Afternoon

  A bit of drama to keep us traders awake today as yet another Trump nincompoop blurts out the wrong thing, sending futures to the floor before a hasty “I didn’t really mean that” retraction saw risk markets square up again. Currencies moved around as well, while gold fell back slightly as the PBOC pushed